New Mexico Inks Spaceport Funding Package

New Mexico
Governor Bill Richardson has signed new pieces of legislation--bills that push
forward work on New Mexico's spaceport. In addition, the state has set in
motion a potential investment deal to attract a space entrepreneurial firm to
work in the area.

As a
result of a legislative session last month, New Mexico is now able to invest
$110 million in building what's labeled as the world's first "purpose
built" spaceport to be located in Upham, New Mexico.

The
spaceport site is approximately 27 square miles of open, generally level, range
land in southern New Mexico that has been picked for its low population
density, uncongested airspace, and high elevation.

New Mexico lawmakers agreed
last month to spend $100 million dollars over the next three years to build the
spaceport. The other $10 million dollars in previous funding is available
to help move forward on the request for proposal process for the design and
construction of the spaceport.

New
bills

Governor
Richardson signed on March 1 two bills that further the spaceport's
development:

-- House
Bill 89: Creates one entity, the New Mexico Spaceport Authority, to oversee the
spaceport.

-- House
Bill 473: Allows local communities--those that will significantly be impacted by
the creation of the spaceport--to ask their voters if they want to support the
spaceport and related development through a new local options gross receipt
tax.

Last
December, Richardson and Sir Richard Branson, Chairman of Virgin Companies
announced a partnership to build the world's first commercial spaceport.
Branson's Virgin Galactic will locate its world headquarters and mission
control for its personal spaceflight business at the spaceport.

Investing
in space firms

Last week,
Richardson signed House Bill 835 that allows the State Investment Office to
invest in New Mexico aerospace companies that receive more than $100 million in
funding from federal agencies like NASA.

The New
Mexico State Investment Council preliminarily approved on February 28 a
potential investment deal with one space entrepreneurial company that is
competing for a share of $500 million in contracts from NASA to provide
commercial crew and cargo launch services.

Charles
Wollmann, Public Information Officer for the Council told SPACE.com that the
group has okayed an investment of up to $20 million in Transformational Space
Corporation LLC (t/Space) of Reston, Virginia, "contingent on the awarding
of a contract by NASA, and negotiation of final terms and conditions." The
space firm would also need to move to New Mexico, he said.

Recent
legislation signed by Governor Richardson enables the State Investment Council
to invest in aerospace companies like t/Space, Wollmann added, should they
receive a government contract of $100 million or greater.

"Our
investment is limited to 10% of the total contract, i.e. if it is $150 million
contract, New Mexico can invest up to $15 million," Wollmann explained.

"t/Space
is delighted to have the State of New Mexico as a partner," said Brett
Alexander, t/Space Vice
President for Government Relations. "New Mexico has been very supportive of our efforts," he told SPACE.com, with the group
enthusiastic about locating its Commercial Orbital Transportation Services
(COTS) development work there.

Oklahoma spaceport action

In a
related spaceport development, progress is also being made on operating a
commercial launch facility at the Clinton-Sherman Industrial Airpark located in
Burns Flat, Oklahoma.

The launch
facility may be used to launch piloted vehicles or vehicles carrying other
payloads. Also under consideration is rocket engine testing at the site.

A
spaceport in the area is of particular interest to Oklahoma-based Rocketplane,
hard at work on building its suborbital XP vehicle intended to haul paying
passengers to the edge of space in 2007.

The FAA
has invited all those interested to take part in a public hearing on using the
site to support space launchings. The hearing will be held at 7:30 PM,
Thursday, March 9, 2006 at the South Western Oklahoma Development Authority, Western Technology Center located in Burns Flat, Oklahoma.